When Creditors Don’t Comply with Post-Discharge Rules

When you file for protection under Chapter 7 of the federal bankruptcy laws, you are supposed to be protected by the automatic stay, which prohibits creditors from calling, writing or taking legal action to collect the debt. Unfortunately, even if you have completed a Chapter 7 filing and discharged your debts, you may still face harassment from creditors. It may come as no surprise that some creditors will simply ignore the judgment of the U.S. Bankruptcy Court, and will either send you threatening letters, call you, or even file a lawsuit against you. When that happens, you need to hire an attorney to protect your rights.

At the office of bankruptcy attorney Carrie Weir, in Rockwall, Texas, I provide a free initial consultation to anyone considering filing for bankruptcy. For a private meeting, contact my office online or call me at 972-772-3083 to set up an appointment.

Your Rights When a Creditor Violates Bankruptcy Laws

As a general rule, when the bankruptcy court enters the discharge of your debts in a Chapter 7 proceeding (or enters a judgment in a Chapter 11 or Chapter 13 filing), the entry serves as a federal injunction against collections efforts for any debts owed prior to the bankruptcy. Provided that the creditor has proper notice of the entry of the discharge, a subsequent effort to collect on a discharged debt is considered contempt of court. The bankruptcy court may impose a range of sanctions, including fines and the payment of legal fees.

The Fair Debt Collection Practice Act (FDCPA) also offers a means of redress when a creditor wrongfully seeks to collect on a discharged debt. Because the debt has been discharged, it is no longer enforceable in a court of law. Therefore, the creditor no longer has a legal right to collect the debt. By representing to you that they have such a right, they have violated the FDCPA.

The Fair Debt Collection Practices Act allows individuals who have been victims of unfair or illegal debt collection efforts to recover compensation of up to $1,000, plus any actual financial losses you may have suffered. If you had to retain legal counsel to fight of the wrongful collection effort, you can seek reimbursement of all legal fees and costs incurred.

Contact Heath, TX Bankruptcy Attorney Carrie Weir

I provide a free initial consultation to anyone with questions or concerns regarding a bankruptcy filing. Contact my office by e-mail or call me at 972-772-3083 for a private meeting. With offices in Rockwall, Texas, I represent clients in Heath, Greenville, Lavon, Wylie, Mesquite and Rowlett.